"Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn's network, now gives us a chance to also change the way the world works," Weiner said in a statement.

Microsoft said it would pay $196 per share for the company and would issue new debt to fund the deal.

The deal, Microsoft's biggest ever, is expected to be completed later this year.

The move comes as the Seattle-based company refocuses its efforts from being a pure software firm, and LinkedIn seeks ways to boost growth.

LinkedIn, which enables members to connect with similar-minded professionals and facilitates job hunting, has some 433 million members worldwide.